While London West End is the most expensive location for an office space, Asia’s cities continue to dominate the world’s priciest office locations, taking up seven of the top 10 positions.
According to CBRE Research’s biannual Global Prime Office Occupancy Costs survey, one of the two markets with a prime occupancy cost of more than US$200 per square-foot is Hong Kong Central (US$251 per sq ft), coming in just after London’s West End (US$274 per sq ft).
This is followed by Beijing Finance Street in third place (US$198 per sq ft), Beijing CBD in fourth place (US$189 per sq ft) and Moscow coming in fifth (US$165 per sq ft).
The other cities ranked among the top 10 are New Delhi (Connaught Place CBD), Hong Kong (West Kowloon), London City, Tokyo (Marunouchi Otemachi), and Shanghai (Pudong).
Singapore came in at 14th place with US$112.91 per sq ft.
Among the top 50 markets, 20 came from Asia Pacific, 20 from EMEA and 10 from Americas. Going by the largest annual increase, as at Q3 2014, Singapore ranks fifth with a 16.5% increase in occupancy cost.
Asia Pacific’s occupier activity is said to be largely driven by technology companies as well as those in the media and telecommunications sectors.
The global office costs reflects the recovery of the global economy rising 2.5% in recent two years.
“We expect the gradual recovery of the global economy to continue, leading to better hiring rates and further reduction in the availability of space across most markets over the near term,” said Richard Barkham, CBRE’s Global Chief Economist.